State of Illinois
90th General Assembly
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[ Senate Amendment 001 ]

90_SB0716

      820 ILCS 105/4a           from Ch. 48, par. 1004a
          Amends the Minimum Wage Law. Provides that, if  specified
      conditions  are  met,  an  employee  may  choose  to  receive
      compensatory  time  off  instead  of overtime pay. Sets forth
      various    limitations    and     requirements     concerning
      applicability,  compensatory  time,  and agreements regarding
      compensatory time.
                                                     LRB9002611WHcc
                                               LRB9002611WHcc
 1        AN ACT to amend the Minimum Wage Law by changing  Section
 2    4a.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Minimum Wage Law is amended  by  changing
 6    Section 4a as follows:
 7        (820 ILCS 105/4a) (from Ch. 48, par. 1004a)
 8        Sec.  4a.   (1)  Except  as  otherwise  provided  in this
 9    Section, no employer shall employ any of his employees for  a
10    workweek  of more than 40 hours unless such employee receives
11    compensation for his employment in excess of the hours  above
12    specified  at  a  rate  not less than 1 1/2 times the regular
13    rate at which he is employed.
14        (2)  The provisions of subsection (1) of this Section are
15    not applicable to:
16             A.  Any salesman or mechanic  primarily  engaged  in
17        selling   or   servicing   automobiles,  trucks  or  farm
18        implements, if  he  is  employed  by  a  nonmanufacturing
19        establishment   primarily  engaged  in  the  business  of
20        selling  such  vehicles   or   implements   to   ultimate
21        purchasers;
22             B.  Any   salesman   primarily  engaged  in  selling
23        trailers, boats, or aircraft, if  he  is  employed  by  a
24        nonmanufacturing  establishment  primarily engaged in the
25        business of  selling  trailers,  boats,  or  aircraft  to
26        ultimate purchasers.
27             C.  Any employer of agricultural labor, with respect
28        to such agricultural employment.
29             D.  Any governmental body.
30             E.  Any  employee employed in a bona fide executive,
31        administrative or professional  capacity,  including  any
                            -2-                LRB9002611WHcc
 1        radio  or  television  announcer,  news  editor, or chief
 2        engineer, as defined by or covered by  the  Federal  Fair
 3        Labor Standards Act of 1938, as now or hereafter amended.
 4        For bona fide executive, administrative, and professional
 5        employees  of  not-for-profit  corporations, the Director
 6        may, by regulation, adopt a  weekly  wage  rate  standard
 7        lower  than  that provided for executive, administrative,
 8        and professional employees covered under the  Fair  Labor
 9        Standards Act of 1938, as now or hereafter amended.
10             F.  Any   commissioned   employee  as  described  in
11        paragraph (i) of Section 7  of  the  Federal  Fair  Labor
12        Standards   Act   of   1938  and  rules  and  regulations
13        promulgated thereunder, as now or hereafter amended.
14             G.  Any employment of an employee in  the  stead  of
15        another  employee of the same employer pursuant to a work
16        time exchange agreement between employees.
17             H.  Any employee of a not-for-profit educational  or
18        residential  child  care  institution  who (a) on a daily
19        basis is directly involved in  educating  or  caring  for
20        children  who  (1)  are orphans, foster children, abused,
21        neglected  or  abandoned  children,  or   are   otherwise
22        homeless   children     and  (2)  reside  in  residential
23        facilities of the institution and (b) is  compensated  at
24        an  annual  rate  of  not  less  than  $13,000 or, if the
25        employee resides in such facilities and receives  without
26        cost  board  and  lodging from such institution, not less
27        than $10,000.
28        (3)  Any employer may employ any employee for a period or
29    periods of not more than 10 hours in  the  aggregate  in  any
30    workweek   in  excess  of  the  maximum  hours  specified  in
31    subsection  (1)  of   this   Section   without   paying   the
32    compensation for overtime employment prescribed in subsection
33    (1)  if  during  that  period  or  periods  the  employee  is
34    receiving remedial education that:
                            -3-                LRB9002611WHcc
 1             (a)  is provided to employees who lack a high school
 2        diploma  or  educational  attainment  at the eighth grade
 3        level;
 4             (b)  is designed to provide reading and other  basic
 5        skills at an eighth grade level or below; and
 6             (c)  does not include job specific training.
 7        (4)  Compensatory time off for private employers.
 8             (a)  General rule.
 9                  (i)  Compensatory  time  off.  An  employee may
10             receive, in accordance with this subsection  and  in
11             lieu of monetary overtime compensation, compensatory
12             time  off  at  a rate not less than one and one-half
13             hours for each hour of employment for which overtime
14             compensation  otherwise   would   be   required   by
15             subsection (1) of this Section.
16                  (ii)  Definition.    For   purposes   of   this
17             subsection, the term "employee" does not include  an
18             employee of a government body.
19             (b)  Conditions.    An    employer    may    provide
20        compensatory  time  to  employees  under paragraph (a)(i)
21        only pursuant to the following:
22                  (i)  Such  time  may  be   provided   only   in
23             accordance with:
24                       (A)  applicable provisions of a collective
25                  bargaining  agreement  between the employer and
26                  the representative of the employees  recognized
27                  as  provided  in  Section  9(a) of the National
28                  Labor Relations Act, or
29                       (B)  in the case of employees who are  not
30                  represented  by a labor organization recognized
31                  as provided in Section  9(a)  of  the  National
32                  Labor    Relations   Act,   an   agreement   or
33                  understanding arrived at between  the  employer
34                  and employee before the performance of the work
                            -4-                LRB9002611WHcc
 1                  if  the  agreement or understanding was entered
 2                  into knowingly and voluntarily by the employee,
 3                  but only if the agreement or understanding  was
 4                  not a condition of employment.
 5                  (ii)  If   the  employee  has  affirmed,  in  a
 6             written or otherwise verifiable  statement  that  is
 7             made, kept, and preserved in accordance with Section
 8             8,   that   the   employee  has  chosen  to  receive
 9             compensatory time in lieu of overtime compensation.
10                  (iii)  If  the   employee   has   not   accrued
11             compensatory  time in excess of the limit applicable
12             to the employee prescribed by paragraph (c).
13             (c)  Hour limit.
14                  (i)  Maximum hours. An employee may accrue  not
15             more than 240 hours of compensatory time.
16                  (ii)  Compensation date. Not later than January
17             31  of  each  calendar year, the employee's employer
18             shall provide monetary compensation for  any  unused
19             compensatory  time  off accrued during the preceding
20             calendar year which was not used prior  to  December
21             31  of  the preceding year at the rate prescribed by
22             paragraph  (f).  An  employer  may   designate   and
23             communicate  to  the employer's employees a 12-month
24             period other than the calendar year,  including  but
25             not  limited  to  a  12-month  period  based  on  an
26             employee's  anniversary  date,  in  which  case  the
27             compensation  shall  be  provided  not later than 31
28             days after the end of the 12-month period.
29                  (iii)  Excess of 80  hours.  The  employer  may
30             provide  monetary  compensation  for  an  employee's
31             unused  compensatory  time  in excess of 80 hours at
32             any time after giving the employee at least 30  days
33             notice.  Such  compensation shall be provided at the
34             rate prescribed by paragraph (f).
                            -5-                LRB9002611WHcc
 1                  (iv)  Policy. An employer which has  adopted  a
 2             policy  offering  compensatory time to employees may
 3             discontinue the policy upon giving employees 30 days
 4             notice.
 5                  (v)  Written request. An employee may  withdraw
 6             an agreement or understanding described in paragraph
 7             (b)(i)(B)  at any time. An employee may also request
 8             in writing that monetary compensation  be  provided,
 9             at any time, for all compensatory time accrued which
10             has  not  yet been used. Within 30 days of receiving
11             the written request, the employer shall provide  the
12             employee the monetary compensation due in accordance
13             with paragraph (f).
14             (d)  Private  employer  actions.  An  employer which
15        provides  compensatory  time  under  paragraph   (a)   to
16        employees  shall  not  directly or indirectly intimidate,
17        threaten, or coerce or attempt to  intimidate,  threaten,
18        or coerce any employee for the purpose of:
19                  (i)  interfering  with  the  employee's  rights
20             under  this  subsection  to  request  or not request
21             compensatory time off in lieu of payment of overtime
22             compensation for overtime hours; or
23                  (ii)  requiring  any  employee   to   use   the
24             compensatory time.
25             (e)  Termination  of employment. An employee who has
26        accrued compensatory time off authorized to  be  provided
27        under   paragraph   (a)  shall,  upon  the  voluntary  or
28        involuntary termination of employment, be  paid  for  the
29        unused  compensatory  time  in  accordance with paragraph
30        (f).
31             (f)  Rate of compensation.
32                  (i)  General rule. If  compensation  is  to  be
33             paid  to  an  employee for accrued compensatory time
34             off, the compensation shall be paid  at  a  rate  of
                            -6-                LRB9002611WHcc
 1             compensation   not  less  than  the  higher  of  the
 2             following:
 3                       (A)  the  regular  rate  received  by  the
 4                  employee when the compensatory time was earned,
 5                  or
 6                       (B)  the final regular  rate  received  by
 7                  the employee.
 8                  (ii)  Consideration of payment. An payment owed
 9             to  an  employee  under  this  subsection for unused
10             compensatory  time  shall   be   considered   unpaid
11             overtime compensation.
12             (g)  Use of time. An employee:
13                  (i)  who  has  accrued  compensatory  time  off
14             authorized to be provided under paragraph (a), and
15                  (ii)  who   has   requested   the  use  of  the
16             compensatory time,
17        shall be permitted by the employee's employer to use  the
18        time  within a reasonable period after making the request
19        if the use of  the  compensatory  time  does  not  unduly
20        disrupt the operations of the employer.
21    (Source: P.A. 88-122; 89-453, eff. 1-1-97.)

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